Sierra Metals Inc Received its Third Buy in a Row

By Austin Angelo

After Roth Capital and Noble Financial gave Sierra Metals Inc (NYSE: SMTS) a Buy rating last month, the company received another Buy, this time from H.C. Wainwright. Analyst Heiko Ihle reiterated a Buy rating on Sierra Metals Inc (NYSE: SMTS) today and set a price target of $4.25. The company’s shares closed yesterday at $2.57.

Ihle wrote:

“We maintain our Buy rating and our $4.25 per share price target. Our valuation is based on an unchanged equally weighted composite of NAV and CFPS methodology. We apply a 12x multiple to our 2018E CFPS, while our NAV analysis utilizes 9.0% discount rates at Yauricocha and Bolívar amid 10.0% at Cusi.”

According to, Ihle is a 4-star analyst with an average return of 4.5% and a 40.3% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, Americas Silver Corporation, and Golden Star Resources Ltd.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Sierra Metals Inc with a $4.58 average price target, which is a 78.2% upside from current levels. In a report issued on July 10, Noble Financial also assigned a Buy rating to the stock with a $4.50 price target.


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Based on Sierra Metals Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $8.7 million. In comparison, last year the company had a GAAP net loss of $2.8 million.

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Sierra Metals, Inc. engages in the production, exploration, and development of precious and base metals. It operates through the Peru and Mexico geographical segments. The Peru segment consists of Yauricocha Mine. The Mexico segment conssits of Bolivar and Cusi Mines. The company was founded on April 11, 1996 and is headquartered in Toronto, Canada.